EUR/USD is on a bearish consolidation pattern ahead of Germany’s retail sales. Analysts expect May’s retail sales to have risen by 5.0% on a month-on-month basis. This is after declining by 5.5% in the previous month. A higher-than-expected reading from the continent’s largest economy would boost the Euro.
Besides, EUR/USD will be reacting to manufacturing PMI numbers from Germany, Italy, France, the broader Eurozone, and the United States. The data will come during the same session that US initial jobless claims are expected. The forecasted reading of 390,000 is lower than the prior week’s 411,000.
In the previous session, the US dollar strengthened against the Euro after better-than-expected ADP nonfarm employment numbers. The additional 692,000 jobs beat the estimates of 600,000. Positive data from the US labor market seem to be confirming Fed’s shift in monetary policy. Notably, the sentiment is a bullish catalyst for the greenback.
EURUSD technical outlook
EUR/USD is on a bearish consolidation pattern. At the time of writing, the currency pair was down by 0.07% at 1.1848. It has been under pressure after hitting an intraday high of 1.1976. On a two-hour chart, it is trading below the 25 and 50-day exponential moving averages.
I expect EUR/USD to rebound to 1.1880, which is along the 25-day EMA. A move above that level will place the resistance level at 1.1910. On the flip side, a move below its current support level at 1.8850 will have the bears eyeing the lower level of 1.8000.
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